Wednesday, July 31, 2013

How to build your first pail of gold (第一桶金)

I would like to share my tips on how to build your first pail of gold (第一桶金).

First of all, the most important is have a strong will. If you want to success, then build your mind that you really want to success. If you want to get rich, then write it down, print it out on paper with font size 72 "I want to get rich!!". Read to yourself 3 times a day. Hypnotize yourself, do whatever you can to build this strong mind. This determination will drive you throughout every hurdles. With this, you know what you really want; with this, you will ignore all the distraction; with this, you will push yourself break through your limitation and lead to the correct path. Simple step? NO! 99% of people can't.  Why? Human nature-> Laziness. That's why not many people success.

Below are just 3 simple yet powerful tips:
(1) Manage your expenses and desire
If your income increase 4% yearly while your expense also increase 4%, then you will not get richer. You don't need to spend more just because you have more money. The $1 you save and invest may earn another $1. But the $1 you spend will be gone forever. Of cos I don't mean don't spend at all. Just manage your expenses. A $3 chicken rice will make you full while $130 lobster may only make you half full. You may eat lobster once a year, if you can afford, but you don't need to have great feast every month.
Human desire is unlimited. Today you may want to drive a Toyota, tomorrow you may think of BMW. But actually you may just need a car. If you need a bag, you may buy yourself a Coach but not necessary a LV. A LV is longer a LV if everybody, include Pasar Aunty also carry a LV. Always ask yourself, "is this a need or want?" You will find out, there are not many things that you "need" to keep you survive and most of the "want" can wait.
(2) Invest in yourself.
Build your earning power. I always believe work hard to earn your salary is the most basic, yet safest and highest return investment. Read more on "Best Investment tip"
(3) Learn various investment tools.
When you have some "bullets", then you can invest in various investment tools. Even you want to buy TOTO,  you need to have money to buy TOTO,  right? (by the way, buy TOTO is not investment.) Read more investment books, (Read more on "Investment books"), know the CORRECT investment habits and methods. Let your money earn more money.





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